Big four banks in biggest NZ class action

Australia’s major banks are facing a class action from disgruntled New Zealand customers who claim they were charged up to $800 million in excessive fees.

Law firm
Slater & Gordon
ann­ounced plans for the action on Monday, saying up to 1 million New Zealanders were eligible to join the case. The class action mirrors a lawsuit against 12 banks in Australia by some 270,000 customers, who claim they were charged around $7 billion in excessive fees.

“Class actions have given better access to justice to thousands of Australians and we are pleased to be able to share some of our experience with our neighbours across the Tasman," Slater & Gordon class action lawyer
Ben Hardwick
said in a statement.

In what has been billed as the biggest class action in New Zealand history, Slater & Gordon will argue that the country’s banks charge customers an average $15 “default fee" every time they overdraw their accounts, pay their credit card late or bounce a cheque.

Mr Hardwick argued the charge was “excessive" when the actual cost to the banks to deal with these issues was only a few cents.

“These fees are clearly excessive and we estimate charges totalling up to $NZ1 billion (about $800 million) over the past six years," Mr Hardwick said. “This case is about giving New Zealanders an opportunity to take a stand.

“We are not saying banks can’t charge fees, we are saying that they need to be fair and lawful."